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                              IN THE UNITED STATES DISTRICT COURT
                                  SOUTHERN DISTRICT OF FLORIDA
                                   Civil Action No.___________________

  JEFF RODGERS, PATRICIA RODGERS, MICHAEL
  LAVIGNE, JENNIFER LAVIGNE, CODY PYLE,
  JENNIFER RIBALTA, IZAAR VALDEZ, FELIX
  VALDEZ, individually and on behalf of all others similarly
  situated

                Plaintiffs,

  v.

  HERBALIFE, LTD.; HERBALIFE INTERNATIONAL,
  INC.; HERBALIFE INTERNATIONAL OF AMERICA,
  INC., MARK ADDY, JILLIAN ADDY, DENNIS
  DOWDELL, GARRAIN S. JONES, CODY MORROW,
  CHRISTOPHER REESE, GABRIEL SANDOVAL,
                                                               CLASS ACTION COMPLAINT
  EMMA SANDOVAL, JOHN TARTOL, LESLIE R.
  STANFORD, FERNANDO RANCEL, LORI BAKER,
                                                               JURY DEMANDED
  MANUEL COSTA, MARK DAVIS, JENNY DAVIS,
  DANIELLE EDWARDS, GRAEME EDWARDS,
  THOMAS P. GIOIOSA, SANDRA GIOIOSA, ALCIDES
  MEJIA, MIRIAM MEJIA, PAULINA RIVEROS, RON
  ROSENAU, CAROL ROSENAU, AMBER WICK, JASON
  WICK, JORGE DE LA CONCEPCION, DISNEY DE LA
  CONCEPCION, JENNIFER MICHELI, GUILLERMO
  RASCH, CLAUDIA RASCH, SAMUEL HENDRICKS,
  AMY HENDRICKS, BRADLEY HARRIS, PAYMI
  ROMERO, ARQUIMEDES G. VALENCIA, RYAN
  BAKER, KRISTOPHER BICKERSTAFF, MARK
  MATIKA, ENRIQUE CARILLO, DANIEL J. WALDRON,
  SUSAN PETERSON, MICHAEL KATZ, and DEBI KATZ

              Defendants.
  _________________________________________________/
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                                 CLASS ACTION COMPLAINT

         Plaintiffs JEFF RODGERS, PATRICIA RODGERS, MICHAEL LAVIGNE, JENNIFER

  LAVIGNE, CODY PYLE, JENNIFER RIBALTA, IZAAR VALDEZ, FELIX VALDEZ,

  individually and on behalf of all others similarly situated, by and through their undersigned

  attorneys, bring this action against HERBALIFE, LTD., HERBALIFE INTERNATIONAL, INC.,

  HERBALIFE INTERNATIONAL OF AMERICA, INC. (collectively, “Herbalife” or the

  “Company”), individual defendants MARK ADDY, JILLIAN ADDY, DENNIS DOWDELL,

  GARRAIN S. JONES, CODY MORROW, CHRISTOPHER REESE, GABRIEL SANDOVAL,

  EMMA SANDOVAL, JOHN TARTOL, LESLIE R. STANFORD, FERNANDO RANCEL,

  LORI BAKER, MANUEL COSTA, MARK DAVIS, JENNY DAVIS, DANIELLE EDWARDS,

  GRAEME EDWARDS, THOMAS P. GIOIOSA, SANDRA GIOIOSA, ALCIDES MEJIA,

  MIRIAM MEJIA, IVONNE RAMIREZ, PAULINA RIVEROS, RON ROSENAU, CAROL

  ROSENAU, AMBER WICK, JASON WICK, JORGE DE LA CONCEPCION, DISNEY DE LA

  CONCEPCION, JENNIFER MICHELI, GUILLERMO RASCH, CLAUDIA RASCH, SAMUEL

  HENDRICKS, AMY HENDRICKS, BRADLEY HARRIS, PAYMI ROMERO, ARQUIMEDES

  G. VALENCIA, RYAN BAKER, KRISTOPHER BICKERSTAFF, MARK MATIKA,

  ENRIQUE CARILLO, DANIEL J. WALDRON, SUSAN PETERSON, MICHAEL KATZ, and

  DEBI KATZ (collectively, the “Individual Defendants” and with Herbalife, the “Defendants”) and

  allege as follows:

                                        INTRODUCTION

         1.      This action seeks recovery from a corrupt organization of individuals and entities

  who act together, using misrepresentation and deceit, to sell access to a series of emotionally

  manipulative live events.
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         2.      The events are pitched as the guaranteed pathway to attaining life changing

  financial success with the multi-level marketing business opportunity sold by Defendant Herbalife.

  Events are held each month in dozens of locations across the country, and range in size from 200

  to 20,000 attendees.

         3.      Herbalife business opportunity participants are told that they must "attend every

  event" if they want to be successful; and that they must "qualify" for special treatment at these

  events by making large monthly purchases of Herbalife's products.

         4.      Defendant Herbalife and its highest-ranking members (including the Individual

  Defendants), jointly produce and sell these events in close association. Defendants market their

  event system as some variation of the “Wheel of Success,” the “Cycle of Success,” or the “Circle

  of Success” (referred to herein as the “Circle of Success”).

         5.      The Circle of Success is graphically represented to participants in dozens of

  different forms, but all are intended to express the same core theme: attendance at events equals

  financial success.

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           6.     On or about October 26, 2011, from the stage of the year’s largest event, Defendant

  Mark Addy concisely stated the mantra that is used to deceive thousands of Herbalife distributors

  and potential recruits in the U.S. every year: “If you go to all the events, you qualify for everything

  – you will get rich.”1 This mantra has been repeated thousands of times over the past four years by

  the Individual Defendants in close collaboration with Herbalife.

           7.     The Plaintiffs here, each of whom has spent thousands of dollars attending these

  events, have received no benefit from doing so, despite Defendants’ continuous barrage of

  guarantees to the contrary.

           8.     Herbalife has long been the object of allegations, litigation, and regulation. Most

  recently the Federal Trade Commission (the “FTC”) acted against the company, asserting that

  Herbalife's structure and deceptive business practices were harming consumers.

           9.     But untouched by the FTC’s action (and ultimate resolution of that action as

  discussed below) is the single most effective fraud in the arsenal of Herbalife and its top

  distributors – the Circle of Success event system. The event system lures and ensnares people such

  as Plaintiffs with the guarantee of significant income, a better lifestyle, and even happiness – all

  to be easily attained through event attendance.

           10.    If Defendants told the truth – that there is no correlation between financial success

  and event attendance – Plaintiffs would not have attended Circle of Success events, would not

  have paid for tickets to Circle of Success events, and would not have paid for incidental expenses

  (such as hotel and airfare) to attend Circle of Success events.

           11.    The Circle of Success is valueless.

  1
      Available at https://youtu.be/Rb0hGAZl7w8.

                                                    -3-
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          12.     Plaintiffs seek damages and injunctive relief against the corrupt organization of

  individuals and entities who sell, operate, and compel participation in the Circle of Success.

                                   JURISDICTION AND VENUE

          13.     This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1331, as

  Plaintiffs assert claims under 18 U.S.C. § 1962(c) and 18 U.S.C. § 1962(d).

          14.     This Court may exercise supplemental jurisdiction over Plaintiffs’ state law claims

  pursuant to 28 U.S.C. § 1367.

          15.     This Court has personal jurisdiction over Herbalife by virtue of Herbalife’s

  extensive business operations in Florida.

          16.     This Court has personal jurisdiction over the Individual Defendants. Defendants

  Lori Baker, Costa, Davis, Edwards, Gioiosa, Mejia, Ramirez, Riveros, Rosenau, Valencia, Wick,

  de la Concepcion, Micheli and Rasch are all residents of Florida. Each of the Individual Defendants

  has committed tortious acts in Florida, including making misrepresentations at Circle of Success

  events in Florida, disseminating false information over the wires in Florida, and each Defendant

  has engaged in substantial and not isolated activity in Florida.

          17.     Venue is proper in the United States District Court for the Southern District of

  Florida pursuant to 28 U.S.C. § 1391, because substantial events giving rise to this Complaint took

  place in this District.

                                  SUBSTANTIVE ALLEGATIONS

  I.      THE FTC COMPLAINT

          18.     In July 2016, the FTC sued Herbalife and certain of its subsidiaries, Case No. 16-

  cv-05217, in the United States District Court for the Central District of California (the “FTC

  Action”). In the FTC Action, the FTC accused Herbalife of operating an enterprise premised on

  the fiction that participants in the Herbalife scheme are likely to earn substantial income. Attached

                                                   -4-
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  hereto as Exhibit 1 is a copy of the Complaint the FTC filed against Herbalife (the “FTC

  Complaint”).

          19.     The FTC Complaint alleged that “Defendants represent, expressly or by implication,

  that Herbalife Distributors are likely to earn substantial income, including significant full-time or

  part-time income, from pursuing a retail-based business opportunity.” FTC Complaint at ¶ 16.

          20.     The FTC Complaint continues: “In reality, however, Defendants’ program does not

  offer participants a viable retail-based business opportunity. Defendants’ compensation program

  incentivizes not retail sales, but the recruiting of additional participants who will fuel the enterprise

  by making wholesale purchases of product.” Id. at ¶ 17. The Complaint further alleges that “[t]he

  overwhelming majority of Herbalife Distributors who pursue the business opportunity make little

  or no money, and a substantial percentage lose money.” Id. at ¶ 20.

          21.     The FTC Complaint focused on the promotional videos and marketing materials

  Herbalife uses, which “include representations that Distributors are likely to earn substantial

  income through Defendants’ business opportunity; images of expensive houses, luxury

  automobiles, and exotic vacations; and income testimonials.” Id. at 25.

          22.     The FTC Complaint recognized that “Defendants strongly encourage” people to

  attend events, that “[s]peakers are usually chosen from the very small percentage of Herbalife

  participants who have reached the highest status levels of the Herbalife organization” and that the

  presenters at the events “repeatedly emphasize that Distributors are likely to earn substantial

  income through Herbalife, and that Distributors’ income potential is limited only by their own

  efforts.” Id. at ¶ 31. The FTC Complaint then provides several examples of the absurd income

  claims being made at the events. See id. at ¶¶ 32-36.

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          23.     The FTC Complaint alleges that Herbalife does not offer a viable retail-based

  opportunity; that is, there is little legitimate market for the Herbalife product outside the network

  and most Herbalife Distributors who pursue the business opportunity make little or no money from

  retail sales. Id. at ¶ 55. Instead, “when Distributors are left with product they are unable to sell

  they may give it to friends, throw it away, or gradually consume it themselves.” Id. at ¶ 74. As a

  result, “the overwhelming majority of Distributors who attempt to retail the product make little or

  no net income, or even lose money, from retailing the product.” Id. at ¶ 75.

          24.     The FTC Complaint alleges that because “Herbalife participants earn little or no

  profit, or even lose money, from retailing Herbalife products . . . recruiting, rather than retail sales,

  is the natural focus of successful participants in Defendants’ business opportunity.” Id. at ¶¶ 147-

  148.

          25.     Herbalife ultimately paid the FTC $200 million and agreed to entry of an order

  prohibiting it from certain business practices. These included limitations on multi-level

  compensation, prohibited misrepresentations relating to income and lifestyle, and compliance

  monitoring. Attached hereto as Exhibit 2 is a true and correct copy of the Stipulation to Entry of

  Order for Permanent Injunction and Monetary Judgment.

  II.     MAKING MONEY WITH HERBALIFE

          26.     None of Herbalife’s top distributors, past or present, including the Individual

  Defendants, has built a significant income by retailing Herbalife’s products according to

  Herbalife’s rules. Defendants have actual knowledge that – despite their incessant misleading

  claims to the contrary – there is no viable retailing opportunity.

          27.     The chain recruiting aspect of the business opportunity also produces dismal

  results for participants. According to the analysis in the FTC Complaint:

                  •       80% of distributors failed to entice a single new recruit into the scheme.

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                 •       43% of those who had succeeded in recruiting a new participant, had
                         nevertheless received no compensation from the company.

                 •       More than half of the top 13% of distributors grossed less than $300 per
                         year in payments from the company.

         28.     Although Herbalife’s compensation plan includes eleven levels of distributors,

  there are effectively two classes of Herbalife participants: the infinitesimally small percentage of

  “haves,” insiders who will trumpet alleged successes and “you can do it too” encouragement; and

  the “have-nots,” outsiders comprising over 99 percent of all Herbalife participants.

         29.     Of the millions of people around the globe who have been duped over the last three

  decades into investing substantial sums to pursue Herbalife’s business opportunity, fewer than 200

  have achieved anything resembling the kind of lifestyles that are the steady refrain of Herbalife’s

  marketing messaging. These 200, the top rungs of the President’s Team, receive most of the

  recruiting rewards paid out by Herbalife. The President’s Team members conspire to keep

  themselves on the top of the pyramid and to prevent their share of the take from being diluted.

         30.     Herbalife promotes the fetishized narrative surrounding the income claims of these

  President’s Team members. President’s Team members are cast as former dropouts, vagrants,

  bartenders, flight attendants, nurses, teachers, single mothers, used car salesmen, bus drivers, and

  college volleyball players – each of whom has achieved astounding success through Herbalife and

  through religious attendance of Circle of Success events.

         31.     In fact, to the extent the Individual Defendants have attained financial success, it is

  largely attributable to some combination of illegal or impermissible activity, such as banned

  recruitment methodologies and other unfair practices, which are not disclosed to Circle of Success

  attendees.

                                                   -7-
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                                    Reliance on Banned Methods

         32.     For example, many North American President’s Team members built large portions

  of their downlines relying on highly aggressive lead generation techniques that were banned by

  Herbalife four years ago as scrutiny of the company’s business practices increased. These systems

  relied on mass marketing the Herbalife opportunity as a “work from home” internet system, and

  on charging distributors thousands of dollars a month to obtain leads generated through this

  deceptive advertising.

         33.     Herbalife’s stipulated settlement with the FTC fundamentally changes the way

  Herbalife operates by requiring distributors to prove retail sales and by forbidding standard

  practices such as using images containing, “opulent mansions, private helicopters, private jets,

  yachts, exotic automobiles.” Yet the Individual Defendants who are still recognizing the residual

  benefits from these banned methods do not disclose that their downline was created in the first

  instance using these methods. Instead they continually defraud unsuspecting participants into

  believing that the key to their success was event participation and the Circle of Success.

                                                Roll-up

         34.     Another undisclosed way in which the Individual Defendants became wealthy was

  by relying on the hundreds of thousands of people who drop out of the Herbalife business

  opportunity each year. The downlines of those drop-outs, often consisting of their own friends and

  family, are “rolled up” the pyramid; greatly advantaging those at the top.

         35.     Many top earning President’s Team downlines have had the advantage of absorbing

  decades worth of Herbalife’s 50% plus churn rate. Prospects and new recruits will not have that

  same opportunity when pursuing their own Herbalife businesses. Yet when promoting their

  allegedly lavish lifestyles, these President’s Team members fail to disclose that a significant source

                                                   -8-
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   of their income was generated by downline recruits quitting, not by any affirmative act or conduct

   by the member.

                                                    Stacking

             36.   Some of the biggest Herbalife downlines are grown and maintained by “stacking”

   the line with distributors, at key positions, who are essentially empty proxies of the upline.

   Controlling multiple points of an Herbalife downline organization facilitates the naked

   manipulation of the compensation scheme. The FTC alleged one telling example of this endemic

   practice among Herbalife’s most successful distributors:

                   Savvy Distributors have figured out ways to use the recruiting
                   reward structure to reap rewards, even without profitable retail sales.
                   For example, during the years 2009–14, one top Distributor paid
                   over $8 million for product (with a total Suggested Retail Price of
                   over $16 million) which the Distributor purchased in the names of
                   various downline members, thereby generating additional rewards
                   and qualifying for higher payments from Defendants. This
                   Distributor then donated all of this product to charity, rather than
                   attempting to sell it. The Distributor generated enough rewards
                   through these purchases to make a net profit, without even selling
                   the products.

   See Ex. 1 at ¶ 86. Stacked downlines are the norm for Herbalife President’s Team members, but

   this is never disclosed to potential recruits.

                                                    Nepotism

             37.   The children and family of Herbalife’s President’s Team members are artificially

   placed in high-ranking positions throughout the scheme. In promotional materials and at Circle of

   Success events, family members hold themselves out as having achieved high incomes by adhering

   to the Circle of Success and by religiously attending and qualifying for special treatment at all

   events.

             38.   For example, Defendant John Tartol, a top earning distributor and member of

   Herbalife’s board of directors, has at least twelve members of his family highly placed within his

                                                      -9-
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   downline; all boast about their achievements at Circle of Success events across the country, telling

   others that they can do the same.

          39.     But the children of President’s Team members who become President’s Team

   members themselves do not work the plan as explained to new recruits. They are stacked into

   preexisting downlines. Their Herbalife recruiting compensation checks are completely detached

   from their own efforts. This experience cannot be replicated by new recruits, who lack connections

   to Herbalife insiders, yet income claims by these members are a significant part of Herbalife’s

   business opportunity sales pitch.

          40.     Herbalife’s “Gen H” initiative – which aims to recruit and retain college age

   participants – is particularly dependent on the income claims of children of long-time President’s

   Team members.

                                  Preopening International Markets

          41.     Herbalife affords certain members of its President’s Team the opportunity to

   “preopen markets” outside of the United States. Herbalife’s products and business opportunity are

   currently available in more than ninety countries. In many of those countries, members of the

   President’s Team were permitted (through the conspicuous non-enforcement of Herbalife’s rules)

   to enter the market and start building downline sales organizations before the market was officially

   open. This selective lack of enforcement allows preferred distributors to claim a place at the top

   of the compensation structure in a given country, assuring that virtually all recruiting and sales

   within that country will generate commissions for these distributors.

                                          Money Laundering

          42.     Large “stacked” downlines present unique opportunities for the Defendants to

   generate illegal profits impossible for new recruits. Receiving compensation for purchasing

   products creates an obvious opportunity and incentive to launder illicit monies through the scheme.

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          43.     Money comes into a downline organization as product purchases and goes out as

   legitimized dollar-denominated commission checks from a global company with a New York

   Stock Exchange listing. 2

                                           Currency Arbitrage

          44.     President’s Team members like Defendant Fernando Rancel, and others working

   the Miami market, have profited greatly from a currency arbitrage scheme.

          45.     The complex arrangement involved a very favorable exchange rate that Herbalife

   utilized to convert Venezuelan bolivar purchases into U.S. dollar commission checks, effectively

   turning the purchase of Herbalife products into a profitable method of transferring money out of

   Venezuela despite their strict capital controls.

          46.     The existence of this method of operation was never disclosed to new recruits as an

   income tool, though the income and lifestyle claims of distributors utilizing the method made up

   a substantial part of the income testimonials presented at Miami area events.

                                           The Tools Business

          47.     A large percentage of the wealth amassed by President’s Team members came from

   selling leads, systems, trainings, websites, marketing materials, mentoring group access, private

   events, etc. directly to recruits. These side businesses, collectively known as the “tools business,”

   are fully detached from Herbalife’s compensation plan.

          48.     President’s Team distributors do not disclose when the mansions, exotic

   automobiles, yachts, and helicopters used in their Circle of Success marketing efforts were in fact

   funded by these supplementary sources of income.

   2
     Plaintiffs expect to discern in discovery which Defendants have used the Herbalife opportunity
   to launder funds.

                                                      -11-
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                                           Broke and Bankrupt

            49.     Many of the income claims made by presenters at Circle of Success events,

   organized and overseen by the Defendants, are altogether false. It is not unusual for top distributors

   to be struggling to survive financially, while boasting from the Circle of Success stage about the

   life changing financial security of their large Herbalife incomes.

            50.     For example, President’s Team member Michael Burton was a frequently featured

   guest speaker at Herbalife events across the country. On June 22, 2013 Mr. Burton was the guest

   speaker at the Miami Success Training Seminar, speaking to members and recruits about the

   “financial freedom” he had attained via his Herbalife business.

            51.     The next month Michael Burton filed for bankruptcy protection in the United States

   Bankruptcy Court for the Eastern District of Texas, Case No. 13-41669.

            52.     Defendants sporadically pair their claims of enormous incomes with ineffective

   “results not typical” style disclaimers, but frequently the claimed results are not just atypical – they

   are fictional.

            53.     The Herbalife success story is a fraud; a predatory scheme intentionally rigged

   against newcomers playing by the rules. The success claimed – and promised – by Defendants at

   Circle of Success events across the country is impossible to attain under its own terms.

   III.     THE HERBALIFE EVENT CYCLE

            54.     As discussed herein, through lies, omissions and misrepresentations, Defendants

   aggressively encouraged Plaintiffs and Class Members to attend a Circle of Success event every

   month.

            55.     Herbalife produces its own large-scale events four times a year: a regional $50

   “January Spectacular,” two regional $100 “Leadership Development Weekends” in April and

   October, and a national $120 “Extravaganza” each July.

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            56.      The other eight months of the year are left to the semi-local $30 – $50 Success

   Training Seminars (“STS”). The STS is produced in conjunction with Herbalife, and tickets to

   these events are sold by an amorphous group of President’s Team distributors that are most

   commonly referred to simply as “the leadership.”

            57.      Since its founding in the 1980s, Herbalife has relied on live events for both

   recruitment and retention. Live events are built around the persuasive power of the personal

   success testimonial. Herbalife founder Mark Hughes consistently emphasized the importance of

   this tool.

            58.      According to Mr. Hughes, only 25% of an event should be devoted to information

   about Herbalife’s products and marketing plan, while the remaining 75% should be reserved for

   success testimonials. The informational part of the meeting was intended only as a setup for the

   emotionally manipulative testimonials.

            59.      At an Herbalife training event posted to YouTube, Mr. Hughes explained his theory

   on the subject:

                     The more people that you can hear from, and the more different
                     backgrounds you hear; and the more different circumstances, and
                     where they were, and where they came from; and what their first
                     month’s income was, and what it is now; the more eyes that you can
                     see; the more somebody, and there’s going to be somebody today
                     that you’re going to see and you’re going to say, ‘If that person can
                     do it, I can do it.’ And that’s the most important thing that can
                     happen to you in Herbalife.3

            60.      For more than thirty years Herbalife has built its revenues by relying almost

   exclusively on the “and you can too” personal success testimonial. At live events, the density and

   3
       Available at https://youtu.be/ZXbHTaKxuwQ.

                                                     -13-
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   seeming sincerity of the income testimonials can overwhelm the resistance of even the most

   skeptical prospect.

          61.     Individual Defendants constantly reiterate the central importance of attending

   Circle of Success events and of getting guests and prospects to do the same.

                  “Our ultimate goal with everything we do in our precess[sic] is
                  getting people plugged into the Herbalife Event Calendar,”
                  President’s Team member Jorge de la Concepción Jr.

                  Events are the, “FASTEST way to build the BIGGEST checks in the
                  SHORTEST period of time,” President’s Team member Andrea
                  Villegas-Shanahan.

                  “There is a DIRECT CORRELATION between the amount of
                  people you bring to an event and your position in the Herbalife
                  Marketing Plan! It is impossible to explain (or re-create) the
                  excitement and impact of 300, 400, 500+ people in a room, all
                  excited and talking about their results and how Herbalife has
                  changed their lives.”

                  See Composite Exhibit 3.

          62.     The FTC provided some detail on Herbalife’s Circle of Success event culture in

   their Complaint against the company:

                  Defendants also sponsor numerous events for Distributors in both
                  English and Spanish. Many of these events include live
                  presentations at which speakers boast about the high incomes they
                  earn as Herbalife Distributors. These events have names such as
                  “Extravaganzas,” “Leadership Development Weekends,” and
                  “Success Training Seminars.

                  Defendants strongly encourage Distributors to attend these events,
                  which often require Distributors to pay an attendance fee and/or
                  purchase a minimum amount of product from Herbalife. Defendants
                  craft the agendas and select the speakers who present at these events.
                  Speakers are usually chosen from among the very small percentage
                  of Herbalife participants who have reached the highest status levels
                  of the Herbalife organization. The presentations made by the
                  selected top Distributors repeatedly emphasize that Distributors are
                  likely to earn substantial income through Herbalife, and that
                  Distributors’ income potential is limited only by their own efforts.
   See Ex. 1 at ¶¶30-31.

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                                                  The STS

          63.      The STS has a long history at Herbalife. During the tenure of Mr. Hughes, the STS

   (and events like it) were held up to three times a week at no cost to the distributor. In the years

   following Mr. Hughes’ death – as the company first stagnated, and then turned all its efforts

   towards “work from home” lead generation systems – the STS was a slow growing, once a month,

   corporate sponsored event.

          64.      One of Herbalife’s original Distributors, Defendant Cody Morrow, gave an

   extensive presentation on the history and future of the STS at the 2013 “Future President’s Team

   Retreat” in Boca Raton. According to that presentation, the growth arc of the STS substantially

   changed in 2009 when top members of the President’s Team, spearheaded by Defendant Dan

   Waldron, “took ownership” of the STS event structure. Attached as Exhibit 4 is a copy of that

   presentation.

          65.      At the beginning of this decade, as the Company transitioned away from its reliance

   on “work from home” systems, the STS became increasingly important as a driver of recruitment.

   Herbalife’s push for $1 billion in North American revenues, dubbed “Mission 1 Billion” by the

   company, was to be achieved by “riding the wave” of exponential STS growth.

          66.      Edition No. 150 of Herbalife Today, a promotional magazine distributed by

   Herbalife, contained a cover article entitled, STS 100K in 2011: Catch the Wave. Attached as

   Exhibit 5 is a copy of that Herbalife Today article.

                   If you’re wondering how to boost your Herbalife business, but
                   you’ve yet to attend a Success Training Seminar (STS), now’s the
                   time! These crucial events provide you with the skills you need to
                   take it to the next level. After all, with the right training, anything is
                   possible, especially when it comes to setting new records, like being
                   the first region ever to reach a billion dollars in sales!

                                                     -15-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 17 of 83

             67.   The STS had become the foundation of Herbalife’s intricately coordinated Circle

   of Success event cycle. Local meetings, nutrition clubs, fitness and weight loss challenges, social

   media posts – all of Herbalife’s so-called “Daily Methods of Operation” – were now aimed at

   finding prospects to feed into the STS. From the same Herbalife Today article:

                   That’s why the STS’s are the key to help make your business grow,
                   and to helping others achieve success. “STS’s are enough to make a
                   new person say, ‘I want to be part of this. I can do this!’” says Mark
                   Matika, Executive President’s Team 15K member, who has been an
                   Herbalife Independent Distributor for more than 29 years.
   See id.

             68.   Long scripted days of income claims accompanied by loud music, shouting,

   clapping, hugging, and crying, move the prospect toward “I can do this!” Just as importantly, the

   STS is critical to convincing people to keep pouring money into the scheme – a monthly

   reaffirmation of the life changing power of Herbalife’s business opportunity.

             69.   Throughout 2011, Defendant Herbalife ran a “Catch the Wave” promotion which

   included monthly training calls with President’s Team members who espoused the primacy of the

   STS as a business building strategy. Herbalife ran a similar promotion in 2012 – “Ride the Wave”

   – which also included monthly President’s Team conference calls.4

             70.   Herbalife did reach $1 billion in North American sales by catching and riding the

   wave of STS growth. The 2013 Morrow Presentation suggested that for North America to reach

   $2 billion in revenues, STS attendance would need to be doubled.

             71.   Herbalife’s STS system is owned and controlled by a web of Defendant connected

   entities. There are currently more than sixty ever-changing U.S. based STS websites registered to

   various distributors. Some of the site registrations are private or registered to mid-level proxies,

   4
    “Level Ten Herbalife Leaders sharing STS success secrets to take your business to Level Ten!
   Ride the momentum of the Herbalife STS Wave!” See Exhibit 6.

                                                   -16-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 18 of 83

   but many are registered to one of the President’s Team members controlling a local area for

   Herbalife:

                ●   STSMiami.com is registered to Defendant Jorge de la Concepcion
                ●   STSOrlando.com is registered to Defendant Sandy Gioiosa
                ●   BostonSTS.com is registered to Herbalife board member Defendant Jim Tartol
                ●   DallasSTS.com is registered to Defendant Dan Waldron
                ●   OrangeCountySTS.com is registered to Defendant Cody Morrow
                ●   SanDiegoSTS.com is registered to Cody Morrow’s son Nick Morrow

          72.       STS tickets are purchased online over these sites or can be purchased onsite with

   cash or credit. For example, attendees of the Central Florida STS previously submitted payment

   to Defendant Tommy and Sandy Gioiosa’s “Gioiosa Marketing” for event tickets. Currently the

   tickets are being sold through an entity called “OrlandoSTS.”

          73.       Miami STS tickets are purchased from Telos LLC, a Florida limited liability

   company managed by President’s Team member Alcides Mejia Jr., son of Defendant Alcides

   Mejia. Event advertisements instruct prospective attendees to purchase tickets by making a deposit

   directly into “Telos LLC account# 898030257080.” Meanwhile, Defendant Jorge de la

   Concepcion registered a “Miami STS, LLC” in Florida, listing himself as “manager.”

          74.       While STS events are effectively owned by top distributors, they are staffed by a

   large “Production Team” of business opportunity participants. These individuals are cajoled into

   volunteering their time to setup audio equipment and chairs, hang banners, assemble welcome kits,

   and make shakes for the VIP tables.

                                                   -17-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 19 of 83

                       (Posted to the Miami STS Facebook page March 8, 2016)

          75.     At Circle of Success events, attendees are encouraged to buy tickets for future STS

   events in bulk packages of between five and twenty tickets. STS tickets and STS ticket packs are

   non-refundable.

                                     Leadership Development Weekend

          76.     Leadership Development Weekends (“LDW”), currently held in April and October,

   are large regional events sponsored and sold by Defendant Herbalife in some ten cities across the

   country. The weekend long events cost $75 – $110 to attend and require most participants to travel

   and stay two nights in a hotel.

          77.     The LDW offers the same basic content as the STS, but larger venues and bigger

   crowds add to the emotional impact of the event. LDW featured speakers are chosen from a small

   subset of the STS speakers, a list that includes all of the Individual Defendants.

                                                   -18-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 20 of 83

           78.     Upon information and belief, Defendant Herbalife compensates Individual

   Defendants to act as featured speakers at these events.

           79.     But like the STS, the LDW is staffed by a Production Team of business opportunity

   participants working uncompensated behind the scenes to produce the very events they are paying

   to attend.

           80.     LDW event tickets are non-refundable.

                                         January Spectacular

           81.     The January Circle of Success event is a hybrid of the STS and LDW. The events

   tend to be larger, more expensive, and are often held over two days.

           82.     Prior to 2015, the event was called “January Spectacular” and it was sponsored and

   sold directly by Defendant Herbalife. But recently “the leadership” has absorbed the event into the

   STS system and renamed it “January Kickoff.” Tickets are now purchased from the same shifting

   list of top distributor-related entities and individuals who sell STS tickets to Circle of Success

   participants.

           83.     Both January Spectacular and January Kickoff tickets are non-refundable.

                                             Extravaganza

           84.     Extravaganza is billed as “the BIGGEST and MOST IMPORTANT event to attend”

   on the Circle of Success calendar. See Exhibit 7. The $120 annual event is attended by some

   20,000 business opportunity participants, and is produced and sold directly by Defendant Herbalife.

           85.     The event features similar content to the STS and LDW. Presentations and panel

   discussions are hosted by the same small subset of speakers utilized at the LDWs, but

   Extravaganzas also feature Defendant Herbalife’s corporate executives.

           86.     The excitement generated by so many Circle of Success participants concentrated

   in one location is often cited favorably by Herbalife’s executives when speaking to analysts and

                                                  -19-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 21 of 83

   stock market investors. On Herbalife’s second quarter 2017 earnings conference call for example,

   CEO Rich Goudis deflected an analyst’s question about a decrease in North American sales by

   referencing the national event.

                  “But listen, we came out of July Extravaganza with 21,000 people.
                  And we were all extremely moved by the enthusiasm and excitement
                  in the business. It was apparent. It was visible. You could hear it.”

          87.     Extravaganza attendance is pushed aggressively by speakers at Circle of Success

   events throughout the year. Extravaganza tickets are available for purchase at STS and LDW

   registration tables as much as six months prior to the event.

          88.     Extravaganza attendance requires air travel and a multi-night hotel stay for the vast

   majority of attendees.

          89.     Extravaganza tickets are non-refundable.

                                            Making the Sale

          90.     There are hundreds of Circle of Success events held across the country each year,

   conducted in both English and Spanish. Each delivers substantially similar content, carefully

   orchestrated by Herbalife, in a substantially similar format; and each centers around the allegedly

   spectacular financial success of the “special guest” speakers. Speakers tell the audience that they

   can achieve the same level of success themselves simply by continuing to attend events.

          91.     Advertising and promotion of the upcoming Circle of Success event begins with a

   one page flier that is distributed at the current month’s STS. The flier is then posted to the

   leadership controlled STS website for the area and on social media pages managed and controlled

   by that same leadership.

          92.     Most fliers tell the brief story of a person who was once lost in the normal struggle

   of human existence; that has since been set free from the bondage of work and uncertainty via the

   “anyone can do this” power of the Herbalife business opportunity:

                                                   -20-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 22 of 83

   •      Just by recommending the nutrition to my circle of influence and my local community, I
          was generating over $4000 extra. In January 2013, after another amazing event, I was so
          blown away by the testimonies that I decided to quit my job and take this business to the
          next level. [Karim Ali, 2016 Miami STS]

   •      I quit my internship @ the states attorneys office and decided to ditch law school to pursue
          the Herbalife business opportunity full time! My first check was $61 and two years later I
          earn over $7,000 + every single month! [Maigan Graham, 2014 Phoenix STS]

   •      Now the lifestyle is truly incredible, enjoying financial freedom traveling the world.
          [Michael Burton, 2013 Miami STS]

   •      Lisa Arnold was able to go from a zero dollar income to a 6 figure income in 12 months
          and she will be sharing in detail exactly how she did so! [Lisa Arnold, 2015 Boston STS]

   •      They both had great results using the products and when their parttime income reached
          $5000 a month, Laura quit her job as a banker and Mike left his job in non-profit
          fundraising… “We are truly living our dreams!” [Mike and Laura Curtis, 2013 Denver
          STS]

   •      After doing Herbalife for just 21 months they were able to reach President’s Team, along
          with Jorge’s parents!!!!! The most important part is that they are able to stay at home with
          their kids and spend every moment with them because of the lifestyle they have earned!
          [Disney & Jorge de la Concepcion, 2015 Tampa Bay STS]

   •      Four months after I signed up I decided to take a leap of faith, so I fired my bosses and put
          Nursing school on hold for life and it’s been the best decision I’ve ever made. [Ximena
          Betancourt-Mejia, 2016 Palm Beach STS]

   •      Within 3 weeks she attended her first STS and that help launch her business to making over
          $8000 a month within 90 days. [Launa Rasch, 2012 Denver STS]

   •      In the first 10 weeks Tim made more part-time than he did full time… “I hit a six-figure
          income in 3 years, and now I earn more per month working the hours I choose around my
          family than I used to make in one year as a Marine! [Tim Hendricks, 2015 Chicago STS]

   •      I attended a training just like the success training seminar I will be at with all of you, and
          loved the positive energy. That day was life changing. I copied what they taught me and
          put it into action right away, and within a few months was able to go full time with
          Herbalife. [Karen Feiger-Kolehmainen, 2014 Palm Beach STS]

   Attached hereto as Composite Exhibit 8 is a sampling of these STS fliers.

          93.    Very few of the preceding examples have any sort of associated income disclaimer;

   and those that do are mostly unreadable, or are half superimposed over the image of a luxury car.

                                                  -21-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 23 of 83

   Plaintiffs have collected more than a hundred examples of this type of blatantly deceptive

   marketing.

          94.     Publication of intentionally misleading STS fliers to leadership-controlled STS

   websites is only step one of the promotional process. Defendants conspire to promote the STS

   across all channels of modern communication, including but not limited to Facebook, Snapchat,

   Instagram, YouTube, Twitter, Zoom, and WhatsApp.

          95.     In a training video distributed by Defendant Herbalife, Defendant Amy Hendricks

   tells distributors that event promotions should focus on the uniqueness of the featured speaker.

   “It’s all about the story, and promoting the trainer themselves,” says Hendricks.

          96.     Each month Defendants distribute, or cause to be distributed, hundreds of thousands

   of fraudulent messages about Circle of Success events across the wires. These messages persuade

   participants to attend these events – and to pump yet more money into the Herbalife scheme – in

   the vain hope of achieving the rapid success being advertised.

          97.     Defendants expect and encourage their Circle of Success promotional messages to

   be remixed and echoed across the wires via the social media accounts of event participants. Each

   event flier published by Defendants generates thousands of clone publications in the months

   leading up to the event.

          98.     For example, the flier for the October 3 – 5, 2014, LDW in Jacksonville was

   originally published to Defendant Herbalife's various websites. Regional leadership then

   republished the flier over their event websites and social media feeds. See Exhibit 9.

          99.     In the final step, hopeful distributors repackaged the flier and passed it along

   through the wires to their own social networks.

                                                  -22-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 24 of 83

                  "If you are serious about growing your business and making an
                  impact in your community YOU WILL BE THERE!!!!"

          100.    Although tickets for LDWs and Extravaganzas are purchased directly from

   Defendant Herbalife, it is the Individual Defendants that are primarily responsible for the

   marketing and promotion of the events. These regional and national events are promoted from the

   STS stage and over the same online and social media channels that “the leadership” use to promote

   the STS.

                                         Attend Every Event

          101.    Circle of Success events present the same basic content month after month, year

   after year, yet Herbalife’s business opportunity participants are nevertheless exhorted to “attend

   every event.” Attending every event is presented as the path to success walked by all of the

   company’s leading lights; a duplicable pattern that anyone can use to achieve the same results.

          102.    A June 25, 2016, post by the area leadership to the “Miami STS” Facebook page

   conveyed the standard message: “ALWAYS attend the events, the one you miss us[sic] the one

   you need the most!”

                                                 -23-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 25 of 83

          103.    Events are time consuming, expensive, and highly repetitive – but Herbalife

   business opportunity participants are expected to attend them all.

          104.    Defendant Lori Baker frequently uses her social media feeds to remind her

   downline that attending all Circle of Success events is the key to attaining life changing success in

   the Herbalife business opportunity. In a January 12, 2017 post Defendant Baker converted the

   “attend every event” mantra ad nauseam into something like a mathematical formula:

                  Super-EZ Success Formula: Work on Yourself + Attend Every
                  Event + Qualify for Everything + Bring People with You = Living
                  the Life YOU Want …

                  #ItWouldBeSuperSadToGetLeftBehindWhenItsThisSuperEZ

          105.    In an April 30, 2015 Facebook post, Defendant Baker made the proposition even

   simpler for the members of her downline. The post, a popular Herbalife meme featuring

   Defendants Mark Addy and Enrique Carrillo, was shared more than sixty times after it was posted

   by Defendant Baker:

                                                   -24-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 26 of 83

          106.    According to their biography in a 2009 issue of Herbalife Today, President’s Team

   members Amber and Jason Wick replaced their incomes as engineers by working the Herbalife

   business opportunity. Their alleged keys to success:

                  Attend every event possible.
                  Bring as many people as you can.
                  Qualify for everything you can at events.

                  See Exhibit 10.

          107.    May 25, 2017 Defendants Jorge and Disney de la Concepcion posted a promotion

   for the upcoming Miami STS to their popular Instagram feed. The post reminded members of their

   downline that event attendance was mandatory:

                  “For those of you serious Herbalife Distributors in Miami, I’ll tell
                  you like we tell our team; Events/Trainings are non negotiable!”

                  See Exhibit 11.

          108.    A May 29, 2017, post by President’s Team member Heather Gregg, posted to the

   private Facebook group for members of Defendant Mark Matika’s downline (which includes

   Plaintiffs Jeff and Patti Rodgers), declares event attendance to be the “FASTEST WAY TO

   GROW.”

                  “THE pathway to advancing in the business can ONLY be done by
                  attending the events and bringing people with you.

                  Be SURE you have your calendar filled with the dates of all events
                  first… then plan everything else around those dates.”

                  See Exhibit 12.

          109.     A private website (ready2gonow.com) for members of Defendants Carol and Ron

   Rosenau’s downline organization makes available documents and instructions for executing a

   success plan referred to as the “2 – 4 – 1 Plan.” The “2 – 4 – 1 Plan” is pitched as a one year path

                                                  -25-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 27 of 83

   from new Herbalife member to the President’s Team, and it centers around attending all Circle of

   Success events.

            110.   Plan participants are expected to sign a contract that states within the first

   paragraph: “Attending these events is ESSENTIAL TO SUCCESS in working the 2-4-1 Plan.”

   The plan also contains this graphic to remind participants that attendance breeds success:

            See Exhibit 13.

            111.   Many Defendants require distributors to sign similar monthly contracts as a

   condition of working as a “Nutrition Coach” out of area Nutrition Clubs controlled by that member.

   These agreements usually have monthly event “attendance requirements,” as discussed in a

   YouTube video published by Defendant Amber Wick’s organization.5

            112.   A video recording from the October 26 – 29, 2011, Extravaganza was later

   distributed as a “training DVD” to attendees of the 2012 January Spectacular, including Plaintiffs.

   5
       Available at https://youtu.be/B91mlvRmL5U

                                                  -26-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 28 of 83

          113.    The DVD shows Defendant Wick hosting a panel discussion about succeeding with

   Herbalife Nutrition Clubs in front of thousands of Herbalife business opportunity participants.

   Wick introduces Defendants Sam and Amy Hendricks, telling the audience that Sam and Amy

   built their fast-growing Herbalife paycheck by relying on the Circle of Success and by working

   their business “event, to event, to event.” Wick says that, “for every person you get to an event,

   you can expect your check to go up by a certain amount.”

          114.    Defendants Sam and Amy Hendricks tell the audience that there is a direct

   correlation between the number of people you bring to the events and your position in Herbalife’s

   compensation plan. Bring ten new distributors with you to Circle of Success events and that,

   “equals President’s Team,” according to Defendant Sam Hendricks. Hendricks says that

   distributors should be careful to “language” their event invitations such that the prospect will think

   they have no choice but to attend if they want to pursue the Herbalife business opportunity.

          115.    On October 11, 2013, during Herbalife’s Extravaganza weekend, Defendant Jillian

   Addy gave a presentation to thousands of Herbalife distributors detailing the staggering growth of

   her and her husband’s organization since their 2009 switch to focusing on working “event to event:”

                                                   -27-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 29 of 83

          116.    Ms. Addy charts out a “Systematic Flow from Fitcamps Into HLF Events,” for

   which she credits an 800% increase in compensation over four years. A similar story is told

   company-wide, month after month, at event after event; Herbalife’s top North American

   distributors credit their entire operations on the Circle of Success event cycle.

          117.    Defendant Herbalife also consistently emphasizes the essential nature of event

   attendance. For example, the “Herbalife Lead” program allocates prospects generated by

   Herbalife’s website and direct marketing efforts to qualifying distributors. Attendance at four

   Circle of Success events, at least two of them corporate-sponsored events, is required to be eligible

   for the program. See Exhibit 14.

          118.    While Herbalife ceded the financing and operation of the STS system to top

   distributors, the company retains significant control. The full curriculum for the STS event is

   provided to Individual Defendants by Defendant Herbalife via myherbalife.com. Under a section

   titled, “Building Your Business -- Approved Trainings for Meetings” the company describes the

   STS as the “mother of all group meetings” and prescribes the materials to be used when presenting

   it. See Exhibit 15.

          119.    The suggested agenda provided with the event materials lays out the whole STS

   day with great specificity. Events all across the country follow this agenda to the minute. See

   Exhibit 16.

          120.    The Herbalife provided agenda calls for featured presenters to close the day with a

   fifteen-minute discussion of the “Action Steps” participants should take upon leaving:

                  “Key piece: next steps, next meeting (STS, LDW)

                  Strive to qualify for everything, consistency, plugging into the

                  Cycle of Success and bringing people with you to the next events!”

   Id.

                                                   -28-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 30 of 83

          121.    According to Defendant Herbalife’s agenda, the key takeaway message of these

   events is to keep qualifying for, and attending, these events.

          122.    It costs more than $600 per year in ticket prices alone to “attend every event.”

                                        Qualify for Everything

          123.    “Qualification” is an idea deeply embedded within the synthetic subculture that

   Defendants cultivate to keep Herbalife business opportunity participants ensnared in unnecessary

   spending. “Qualification” is Herbalife parlance for meeting the bulk purchasing and recruiting

   requirements arbitrarily established by both Herbalife and the Individual Defendants.

                  (photo taken by Herbalife distributor at the October 2013
                  Extravaganza in Las Vegas)

          124.    Herbalife’s compensation and commission structure encourages participants to

   progress up a ladder of clearly delineated ranks. According to Herbalife, “qualifying” for a new

   rank, an achievement recognized with great fanfare at Circle of Success events, correlates with an

                                                   -29-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 31 of 83

   increased earning potential. The more you recruit, the more you are compensated for those you

   have already recruited.

          125.    There are eight compensation levels between a new Herbalife recruit and the

   vaunted President’s Team. In recent years, Herbalife has added four additional “recognition levels”

   to the stairway. Recognition levels are qualifications celebrated with pins and certificates at Circle

   of Success events, but which do not actually have an effect on a distributor’s compensation.

          126.    But “qualification” also refers to bulk purchases made in order to satisfy

   requirements which are tied directly, and exclusively, to the Circle of Success. These qualifications

   are completely detached from the compensation scheme. When Herbalife’s business opportunity

   participants are daily entreated to “qualify for everything,” it is this ceremonial event qualification

   which is usually being referenced.

                                                    -30-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 32 of 83

          127.    A photo posted to Facebook by an Herbalife distributor shows Defendant Tommy

   Gioiosa, appearing at a January 29, 2017 Circle of Success event in Philadelphia, standing beneath

   a sign reading, "CHANGING PEOPLE'S LIVES."

          128.    "I always qualify for everything ... no matter what," reads the PowerPoint

   presentation displayed on the monitor in front of Gioiosa. "Get as many people to qualify for all

   the events with you."

          129.    At Circle of Success events participants can qualify for “advanced” trainings,

   mentoring sessions, dinner with guest speakers, special photo opportunities, and “VIP seating and

   treatment” while at the event.

                  (January 24, 2017 Instagram post by Erika Martin, ranking agent of
                  Defendants Jorge and Disney de la Concepcion)

          130.    VIP qualifiers are positioned at the front of the venue, usually seated at tables where

   they are served – and conspicuously consume – Herbalife products throughout the event. During

   the hours-long seminars frequent reference is made to the accomplishment and import of being

   seated at the VIP tables. VIP qualifiers are said to be signaling the seriousness of their commitment

   to their downline members, and to “the leadership.”

                                                   -31-
Case 1:17-cv-23429-MGC Document 1 Entered on FLSD Docket 09/18/2017 Page 33 of 83

          131.    VIP and other qualification requirements vary by event and location. For example,

   in 2016:

   •      Miami STS VIP qualification required “10,000 Personal Volume Points” (roughly $5000
          worth of purchases) in the preceding month

   •      Spanish language Miami STS VIP qualification required 2500 Personal Volume Points in
          the preceding month

   •      Tampa Bay STS VIP qualification required 7500 Personal Volume Points the preceding
          month

   •      Silver VIP qualification for the Orlando LDW required an accumulation of 25,000 Total
          Volume Points during the four months preceding the event

   •      Silver VIP qualification for the Atlanta Extravaganza also required an accumulation of
          25,000 Total Volume Points during the four months preceding the event

                           (July 10, 2017 screen capture inside myherblife.com)

          132.    Herbalife’s members only website, myherbalife.com, has a “Qualification Status”

   tracking system to allow distributors to see the progress they have made toward Circle of Success

   event qualifications.

                                                   -32-
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